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Trade-Ideas LLC identified
) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Salix Pharmaceuticals as such a stock due to the following factors:
- SLXP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $429.9 million.
- SLXP has traded 1.2 million shares today.
- SLXP traded in a range 289.1% of the normal price range with a price range of $4.68.
- SLXP traded above its daily resistance level (quality: 165 days, meaning that the stock is crossing a resistance level set by the last 165 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.
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More details on SLXP:
Salix Pharmaceuticals, Ltd. acquires, develops, and commercializes prescription drugs and medical devices to treat various gastrointestinal diseases in the United States. Currently there are 3 analysts that rate Salix Pharmaceuticals a buy, no analysts rate it a sell, and 9 rate it a hold.
The average volume for Salix Pharmaceuticals has been 2.7 million shares per day over the past 30 days. Salix has a market cap of $10.1 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.76 and a short float of 24.7% with 4.28 days to cover. Shares are up 37.2% year-to-date as of the close of trading on Tuesday.
rates Salix Pharmaceuticals as a
. Among the primary strengths of the company is its solid stock price performance. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share.
Highlights from the ratings report include:
- Compared to its closing price of one year ago, SLXP's share price has jumped by 37.62%, exceeding the performance of the broader market during that same time frame. Although SLXP had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
- SLXP, with its very weak revenue results, has greatly underperformed against the industry average of 10.4%. Since the same quarter one year prior, revenues plummeted by 94.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- SALIX PHARMACEUTICALS LTD has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, SALIX PHARMACEUTICALS LTD swung to a loss, reporting -$6.52 versus $2.14 in the prior year. This year, the market expects an improvement in earnings ($3.91 versus -$6.52).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Pharmaceuticals industry. The net income has significantly decreased by 650.4% when compared to the same quarter one year ago, falling from $52.26 million to -$287.65 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Pharmaceuticals industry and the overall market, SALIX PHARMACEUTICALS LTD's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Salix Pharmaceuticals Ratings Report.